Question $1(20$ marks$)$

On December $31,$ Year $7,$ Munster Ltd$.$ issued $$1,000,000$ of $4\%,5-$year bonds paying interest on June $30$ and December $31.$ The market rate of interest was $4\mathrm{.}8\%.$ The bonds were issued at $96\mathrm{.}481.$

Required

a$.$ Calculate the issue price. Round your numbers to the nearest dollar.

b$.$ Prepare a bond amortization table for the initial issue of the bonds and the first three interest periods.

c$.$ Prepare all required journal entries for the issue of the bonds and the Year $8$ interest payments using the net method.